US-based renewable energy company Clearway Energy has signed a binding agreement to acquire the remaining 50% stake in a solar project portfolio in Utah for a $335m consideration.
The Utah Solar Portfolio includes seven utility-scale solar farms with 530MW of capacity, which entered commercial operations in 2016.
Clearway Energy currently holds a 50% interest in the solar portfolio as an equity method investment.
The solar farms included in the deal sell clean energy to Pacifi Corp, an electric power company in the western US, under a 20-year power purchase agreement (PPA).
Under the terms of the PPA, the solar facilities will deliver the green energy to Pacifi Corp for almost another 15 years.
Clearway Energy intends to partly finance the deal with new non-recourse project level debt in the range of $210m to $240m, resulting in an expected net corporate capital commitment of almost $95m to $125m.
The transaction is expected to close in the fourth quarter of this year subject to customary closing conditions.
Once the deal is completed, Clearway Energy will consolidate the Utah Solar Portfolio in its financial statements.
Clearway Energy president and CEO Christopher Sotos said: “The acquisition of the remaining 50% interest in the Utah Solar Portfolio will continue the company’s successful track record of executing on third-party transactions to meet our long-term growth objectives.
“With this transaction, Clearway will invest in new growth at attractive economics, increase its long-term contracted cash flow from utility-scale solar and further diversify its portfolio on a regional basis.”
Last December, Hannon Armstrong Sustainable Infrastructure Capital announced a preferred equity investment in a renewable energy portfolio with 1.6GW of combined capacity, which was developed and managed by Clearway Energy Group.
The renewable portfolio includes three wind projects, one solar asset and three combined solar-plus-storage projects.
Clearway Energy currently has more than 4,700MW of installed wind and solar capacity in total located across the US.